CROSS RIVER – GOVERNMENT DEVELOPMENT BONDS LAW
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LAWS OF CROSS RIVER STATE
CHAPTER G3
GOVERNMENT DEVELOPMENT BONDS LAW
ARRANGEMENT OF SECTIONS
SECTION
- Creation of bonds.
- Power to raise funds.
- Issue and purpose of first bond.
- Subsequent bonds.
- Irrevocable letter of Authority.
- Regulations.
- Interpretation.
- Short title.
CHAPTER G3
GOVERNMENT DEVELOPMENT BONDS LAW
A Law to enable the Government of Cross River State to raise internal loans from the Nigerian Capital Market through the issuance of securities in the form of bonds for specific development projects authorised by the State Executive Council and for all other matters connected therewith.
(20th March, 2002)
[Commencement]
- Creation of bonds
There shall be created and issued to the public from time to time development bonds by the Government of Cross River State for specific projects approved by the Executive Council, subject to the provisions of section 6 of this Law.
- Power to raise funds
(1) The Commissioner, on behalf of the Governor may from time to time with the approval of the Executive Council and the House of Assembly and subject to the provisions of section 6 of this Law, raise funds for both economic and social developmental purposes in the State by issuing Development Bonds to be known as the Cross River State Floating Rate Redeemable Development Bonds.
(2) Funds raised by Development Bonds as specified in subsection (1) of this section shall not be in excess of four billion, six hundred million naira.
- Issue and purpose of first bond
The Development Bonds shall be issued by public offers subject to section 6 of this Law for the purposes of undertaking projects approved by the Executive Council.
- Subsequent bonds
Subject to the provisions of this Law Development Bonds shall be issued from time to time as the need arises on terms to be determined by the Executive Council in respect of projects approved by the Cross River State Executive Council.
- Irrevocable letter of Authority, Federal Government guarantee
The State shall issue an irrevocable letter of authority in respect of each Development Bond giving the Accountant-General of Federation the authority to deduct at source from the statutory allocation due to the State.
- Regulations
(1) The Commissioner shall, in respect of each Development Bond to be issued, make regulations published in the Gazette for the purpose of giving effect to the provisions of this Law.
(2) The regulations made under subsections (1) of this section may provide and include all or any of the following matters relating to the Development Bonds—
(i) the value;
(ii) the commencement date and tenor;
(iii) the purpose(s);
(iv) the maturity and redemption dates;
(v) the coupon rate;
(vi) the cost of the issue;
(vii) the rate of interest payable;
(viii) the mode of offer;
(ix) the issue price; and
(x) such other matters as the Commissioner may consider necessary.
- Interpretation
In this Law—
“bondholder” means any person for the time being entered in the register as a holder of unit(s) of the Development Bonds offered under the issue and includes persons so registered as joint holders;
“Commissioner” means the member of the Executive Council with responsibility for finance;
“Development Bond” means the Floating Rate Redeemable Development Bond of the State;
“Executive Council” means the Executive Council of the State; “Gazette” means the Official Gazette of the State;
“Government” means the Government of the State;
“Governor” means the Governor of the State;
“House of Assembly” means the House of Assembly of Cross River State;
“State” means Cross River State.
- Short title
This Law may be cited as the Government Development Bonds Law.
CHAPTER G3
GOVERNMENT DEVELOPMENT BONDS LAW
SUBSIDIARY LEGISLATION
No Subsidiary Legislation
